1. Statement should be short

2. Statement should be in one sentence

3. Managers should have input into developing the statement

A declaration of an organisation's "reason for being"

Answers the pivotal question "What is your business"

Essential thing to establish objectives and formulating strategies

Reveal what an organisation wants to be and whom it wants to serve

also known as;

• Creed statement
• A statement of purpose
• A statement of beliefs

1. Select several activities about these statement; ask managers to read them as background information

2. Ask managers to prepare Vision and Mission statement for the organisation

3. Top managers should merge these statements into a single document and distribute the draft statements to all managers

4. A requirement for modifications, additions and deletions is needed next.

5. Meeting is needed to revise the documents

1. Ensure all employees / managers understand the firm's purpose or reason for being

2. Provide key internal and external factors utilised to formulate feasible strategies

3. Provide a basis for allocation of resources

4. Provide a basis for organising work, departments, activities and segments around a common purpose

1. Achieve clarity of purpose among all managers and employees

2. Provide direction

3. Provide a focal point for all stakeholders of the firm

5. Promote a sense of shared expectations among all managers and employees

6. Project a sense of worth and intent to all stakeholder

8. Achieve synergy among all managers and employees